Sweetwood Company issues $5 million, 10-year, 9% bonds at 96, with interest payable annually on January 1.
Question:
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2019.
(b) Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2019.
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a Jan 1 Cash 96 X 5000000 4800000 Discount ...View the full answer
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Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
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Related Book For
Financial Accounting
ISBN: 978-1119305736
10th edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
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